Your Neighbor’s House Is Hurting Your Property Value — Is There Anything You Can Actually Do?

A neglected neighboring property can affect a home’s marketability, but homeowners need evidence, local rules, and comparable sales before assuming it has reduced their property value – Shutterstock

Your neighbor’s neglected house can affect how buyers view your property, but that does not automatically give you the power to make the owner clean it up. A peeling exterior, overgrown yard, abandoned vehicles, junk piled beside the garage, or a visibly neglected property can create a problem that feels personal but often requires a very practical response.

The first question is not, “How much money is this costing?” It is, “Can the market actually show an effect?” That distinction matters because appraisers do consider adjoining properties and other outside conditions that may affect value or marketability. Fannie Mae specifically instructs appraisers to consider adjoining properties that could adversely affect a home’s value or marketability.